Chapter 3 Research Methodology

Contents

3.1 Introduction

3.2 Population framework

3.3 Sampling framework

3.4 Research instrument

3.5 Measurement and scaling technique

3.6 StatisticaI tools and techniques

CHAPTER 3

Research Methodology

3.1 Introduction

This chapter deals with the explanations of the methods and techniques designed

and adhered for addressing the objectives of the present study. The approach to the

problem/issue was of inferential in nature involving generation of data from a sample of

population which are subjected to infer characteristics of and/or relationships among

various segments of the population. Hence, the research methods and techniques adopted

in order to attain the objectives of the present research work represent the qualities of an

inferential study.

Section 3.2 deals with details of the population framework which delineates the e-

banking customers of such private and the public sector banks operating in Cachar

District that were selected for the purpose of the study.

Next to this is the sampling framework in section 3.3 depicting the method of

sampling and the size of the sample that was taken into consideration for the survey.

The explanations of the research instrument and the measurement & scaling

techniques used in the present study are included in section 3.4 and section 3.5

respectively.

20

Finally, section 3.6 deals with statistical tools and techniques applied for the

purpose of analyses and interpretations of the data gathered from the survey of the

present study.

3.2 Population Framework

in order to address the objectives of the present study primary data were collected

from the e-banking customers of such Private and Public sector banks operating in

Cachar District that were selected for the purpose of the study. As far as the population

(N) of the present study is concerned it comprises of the e-banking customers of both the

private and the public sector banks that were finally selected for the purpose of the study.

The details of the banks and the numbers of its branches that were considered for the

purpose of the study alongwith their locations are shown in Table 3.1.

T 3.1: Details of the selected banks and locations.

SI. No.

1

2 3

4

5

6

Name of the Bank

Axis Bank

The Federal Bank Ltd. HDFC Bank Ltd.

Indusind Bank

ICICI Bank

Yes Bank

No. of Branches selected 1

1 1

1

1

1

Location(s) of the Branch(es) selected

Chowchakra Complex, Shyama Prasad Road, Shi I long Patty, Silchar.

Shillong Patty, Silchar. Club Road, Hotel Geetanjali Complex, Silchar.

1 St Floor, Cachar Market, Rangirkhari, N. S. Avenue, Silchar-788005, Assam.

Giri Bhawan, N. S. Avenue, Near Life Line Hospital, Silchar-780005, Assam.

Shyama Prasad Road, Shillong

21

USIM UMVERSiTT UBURT

ACCCSSiijr-

7

8

9

10

11

12

State Bank of India

United Bank of India

UCO Bank

Central Bank o f India

Punjab National Bank

Allahabad Bank

6

4

4

3

3

3

Patty, Silchar. New Silchar Branch, NIT Silchar Branch, Silchar Branch, Silchar Bazar Branch, Sonai Road Branch, Tarapur Branch.

Ghunghur Branch, Meherpur Branch, Silchar Branch,

Tarapur Branch. Silchar Branch, G. C. College (Silchar) Branch, Assam University Branch, Silchar Polytechnic Branch.

Silchar Branch, Jarailtola Branch, Hospital Road Branch.

Hospital Road Branch , Hilara Branch and Chibita Bichia Branch

Hospital Road Branch, Jalalpur Branch and Dudhpatil Branch

3.3 Sampling Framework

3.3.1 Method of Sampling

In order to collect the primary data from the e-banking customers of the public

sector commercial banks the sampling has been carried out in two stages- firstly to select

the banks and then its branches.

22

The selection of the Pubhc Sector Commercial banks was made on the basis of its

reach in terms of its branches in the district i.e., Cachar. The bani<s thus identified and

selected include the banks having a minimum of three branches in Cachar district viz.,

State Bank of India, United Bank of India, Central Bank of India, UCO Bank, Allahabad

Bank and Punjab National Bank.

in the second stage the sampling of the branches, from each of the public sector

banks which were selected for the study, was carried out. Such branches of Public Sector

Banks operating in Cachar district were selected for the purpose of study which had more

customers having adopted e-banking. A preliminary enquiry over the matter of number of

users of e-banking revealed that such customers are more in number with the branches

located in Silchar and around than the places like sub-division towns-Lakhipur for

example.

Since almost all the Private Sector Banks operating in Cachar district, which were

six in number at the time of the concerned decision making, had its branches in Silchar

town only, all these were selected for the study. Interestingly all these banks had only one

branch each and therefore, option of selecting the branches did not arise. These six banks

are- Axis Bank, ICICI Bank, Federal Bank, HDFC Bank Ltd., Indusind Bank and Yes

Bank. The e-banking customers of the selected branches of both private and public sector

banks finally constitute the population (N) of the study.

23

3.3.2 Size of the sample

The size of the e-banking customers (n) was determined with the help of sample

size calculator which is available online at http://www.macorr.com/sample-size-

calculator.htm. At 95% confidence level and confidence interval of 6 the size of the

sample obtained was 267.

After completing the above mentioned two stage sampling task, the next step that

was carried out in this regard was deciding the size of the respondents from both the

private and public sector banks selected for the purpose of the study. This was made in

proportion to the number of branches under each of the selected private and public sector

banks which is shown in Table 3.2.

T 3.2: Size of observations under each of the selected Banks.

Name of the Bank

State Bank of India

United Bank of India

UCO

Central Bank of India

Punjab National Bank

Allahabad Bank

Axis Bank Induslnd Bank HDFC Bank Ltd. ICICl Bank Federal Bank Yes Bank

Total

Number of Branches

6

4

4

3

3

3

29

Size of observations

55

37

37

28

28

28

9 9 9 9 9 9

267

24

3.4 Research Instrument

In order to achieve the objectives of the study a structured questionnaire was

designed. Assuming that if the questionnaire is prepared only in English language good

many respondents may not be able to understand the requirement and the spirit of some

of the questions fully, beneath every question/write up there was made available a Bangia

translation. The number of questionnaires administered to e-banking customers was 267

as per the sampling design mentioned above. The questionnaire entailed in it three

different types of enquiries related to customers of e-banking viz., socio-demographic,

related to the adoption of e-banking services by the customers and the satisfaction of the

e-banking customers. Almost all the questions in the questionnaire were close ended

ones. However, in case of non socio-demographic questions the last option in many cases

offered not only the response but also the count/matter. Not to say that to only this extent

the questionnaire was open ended. This was done to obtain a more comprehensive picture

of the respondents' feelings and attitudes.

The first part of the questionnaire enquired the socio-demographic profile of the

respondents. It deals with the information regarding the respondents' Age, Gender,

Education and Occupation. The details of the profile of the respondents are shown in the

Table 3.3.

The second part of the questionnaire included in it the statements against each of

the determinants relating to the adoption of e-banking services. Thirteen such

determinants which were found suitable for the purpose of conducting an enquiry on e-

banking services on the basis of the literature review and later confirmed by the pilot

25

survey were the main point of enquiry. These thirteen determinants that were selected are

as follows:

Improved accessibility, Quicker service, Reduced cost. Avoidance of physical and mental agony,

Improved social status. Avoidance of embarrassment, Easy to use. Improved Compatibility,

Security, Positivity of attitude, Privacy, Trust and Facilitates online trading.

T 3.3: Socio-demographic profile of the respondents.

Age: 1. 15-30 2. 30-45 3. 45-60

Gender: 1. Male 2. Female

Educational Qualification: 1. HS 2. Graduate 3. Post Graduate

Occupation: 1. Service 2. Business 3. Others

Frequency (n=267)

105 79 83

149 118

77 112 78

87 103 77

Percent

39.30% 29.60% 31.10%

55.80% 44.20%

28.80% 41.90% 29.20%

32.60% 38.60%) 28.80%

Source: Field Survey.

The third part of the questionnaire enquires about the angles of customers'

expectations in terms of their requirements and actual service provided to them. For this

purpose eighteen counts of service quality were taken into consideration. These eighteen

dimensions of e-banking services that were taken into consideration are:

1. Availability of on -line customer care for response to e-banking queries.

2. Availability of prompt response to customers' queries by email or other means.

26

3. Availability of employees off-line (in the branch) for providing assistance to

customers for e-banking related services.

4. Efficiency of e-banking related Complaint Redressal System of the bank.

5. Promptness in providing information to customers about services performed or

otherwise along with the details/reasons of the same.

6. Timely availability of financial information through i-banking.

7. Timely transfer of money.

8. Timely availability of the updated policies and notices of the bank on the bank's

web site.

9. Timely availability of financial information through m-banking.

10. Confidentiality of the e-transactions.

11. Availability of uninterrupted services by the ATMs for the duration claimed.

12. Requisite functionality of the ATMs.

13. Uninterrupted functionality of the bank server.

14. Accuracy of Information through i-banking.

15. Accuracy of delivery of services by the bank through its ATMs.

16. Accuracy of information through m-banking.

17. Availability of sufficient number of ATM booths.

18. Requisite delineation of the details of the policy and the notices on the bank's

website.

3.5 Measurement and Scaling Techniques

3.5.1 Measurement and sealing in relation to adoption of e-banking services by the

customers

27

The response in relation to each of the selected components of adoption of e-

banking services was measured by using a Five Point Likert Type Scale ranging from

Strongly Agree to Strongly Disagree. Each point of the scale carries a score. Response

indicating the least favourable degree of adoption of e-banking services is given the least

score i.e.l and the response indicating the most favourable one is given the highest score

of 5. This way the instrument is capable of yielding a total score for each respondent,

which would in course be capable of measuring the respondent's attitude towards the

adoption of e-banking services. Since there were thirteen numbers of statements relating

to the adoption of e-banking services, the scores of any respondent would fall between 13

and 65 as shown below:

13 X 5 = 65 (Most favourable attitude towards adoption)

13 X 3 = 39 (Neutral attitude)

13x1 = 13 (Most unfavourable attitude towards adoption)

If the score of the response of any respondent happens to be above 39, it would

mean favourable opinion towards adoption of e-banking services, whereas a score below

39 would mean unfavourable opinion and a score of exactly 39 would reflect a neutral

attitude towards adoption of e-banking services.

3.5.2 Measurement and scaling in relation to the satisfaction of the e-banking

customers

The satisfaction of the e-banking customers were also measured by using a Five

Point Likert-Type Scale ranging from 'Fully Satisfied' to 'Fully dissatisfied' based on

28

eighteen selected counts. The scores of any respondent in this case would fall between 18

and 90 as shown below:

18 X 5 = 90 (Most favourable response)

18 X 3 = 54 (Netural response)

18 X 1 = 18 (Most unfavourable response)

If the score of the response of any respondent happens to be above 54, it would

mean favourable opinion towards adoption of e-banking services, a score below 54 would

mean unfavourable opinion and a score of exactly 54 would reflect a neutral attitude

towards adoption of e-banking services.

3.6 Statistical Tools and Techniques

In order to address the second and the third objectives of the study, Factor

Analysis by using Principal Component Method of Extraction was performed. The

purpose was to identify the latent factors contributing towards the adoption of e-banking

services by the customers and also the latent service quality dimensions that influence the

satisfaction of the e-banking customers in Cachar District of Assam.

The factors that were extracted in relation to both the above mentioned cases were

further analysed with the help of the overall weighted average scores of the components.

The calculations for both the cases of adoption and satisfaction are shown in the

following sub-sections:

29

3.6.1 Calculation of the adoption scores of the factors.

The adoption scores of the factors (extracted from the Factor Analysis) were

obtained from the mean of the overall of weighted average scores of the components

under each of the factors. The Weights (W) of the components are the respondents'

degrees of agreements and disagreements over the components under each factor. As the

respondents' degrees of agreements and disagreements were recorded on a Five Point

Scale, the values of the weights attached to the five points of agreement and disagreement

ranged from 1 to 5 which are shown in Table 3.4.

T 3.4: Weights for the calculation of the weighted scores of the components of adoption of e-banking services.

Choice of Agreement and Disagreement

Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree

Weightings

5

4

3

2

1

The calculation of the adoption scores for each of the four latent factors that were

extracted from the Factor Analysis are shown in Table 3.5, Table 3.6, Table 3.7 and

Table 3.8 as follows:

30

T 3.5: Calculation of the adoption score of the factor- Relative Advantage.

Components

Improved Accessibility Quicker service Avoidance of physical and mental agony Reduced cost Online trading

Strongly Agree

6 8 x 5

7 8 x 5

6 6 x 5

9 2 x 5 5 5 x 5

Agree

148x4

152 x 4

140x4

131 x 4 119x4

Neutral

45 X 3

3 0 x 3

4 8 x 3

3 6 x 3 53 X 3

Disagree

if ^2)

6 x 2

7 x 2

1 3 x 2

8 x 2 4 0 x 2

Strongly Disagree

Mean

Adoption Scores

4.04'

4.13''

3.97'

4.14' 3.71'

4''

Source: Field Survey.

Note: a. The weighted scores of the components are the weighted averages obtained from-(fx 5) + (fx4) + (fx 3) + (fx2) + (fx l)/267 b. The adoption score of the factor Relative Advantage which was obtained from the mean of the overall weighted scores of its components.

T 3.6: Calculation of the adoption score of the factor- User Involvement.

Components

Compatibility Positivity of attitude Easy to use

Strongly Agree if ^5)

68 X 5

65 X 5

67 X 5

Agree

140x4 132x4

122 x 4

Neutral

( / • x i ;

47 X 3

53 X 3

38 X 3

Mean

Disagree

if ^2)

12x 2 17 x 2

3 2 x 2

Strongly Disagree if^l)

8 X 1

Adoption Scores

3.99' 3.92'

3.78' 3.99"

Source: Field Survey.

Note: a. The weighted scores of the components are the weighted averages obtained from-(fx 5) + (fx4) + (fx 3) + (fx2) + (fx l)/267 b. The adoption score of the factor User Involvement obtained from the mean of the overall weighted scores of its components.

31

T 3.7: Calculation of the adoption score of the factor- Reliability.

Components

Privacy Security Trust

Strongly Agree

50x5 169 X 5

44x5

Agree

167x4 41 x4 143x4

Neutral

( / • x3 ;

5 x 3 37x3 46x3

Disagree

if ^2)

34x2 17x2 31 x2

Strongly Disagree

11x1 3x 1 3x 1

Mean

Adoption Scores

3.79' 4.33' 3.73' 3.95"

Source: Field Survey.

Note: a. The weighted scores of the components are the weighted averages obtained from-(f X 5) + (f X 4) + (f X 3) + (f X 2) + (f X 1)/ 267

b. The adoption score of the factor Reliability obtained from the mean of the overal weighted scores of its components.

T 3.8: Calculation of the adoption score of the factor- Social Image.

Components

Improved social status Avoidance of embarrassment

Strongly Agree if ^5)

50x5

25 X 5

Agree

{f^4)

153 X 4

160x4

Neutral

39x3

47 X 3

Mean

Disagree

if ^2)

25 X 2

35 X 2

Strongly Disagree if^i)

Adoption Scores

3.85'

3.66'

3.76"

Source: Field Survey.

Note: a. The weighted scores of the components are the weighted averages obtained from-(fx 5) + (fx4) + (fx3) + (fx2) + (fx i)/267

b. The adoption score of the factor Social image obtained from the mean of the overall weighted scores of its components.

32

3.6.2 Calculation of the satisfaction scores of the latent factors.

Like the adoption scores of the factors, the satisfaction scores of the dimensions

(extracted from the Factor Analysis) were obtained from the mean of the overall

weighted scores of the components under each of the factors. However, the calculation of

the weighted scores of the components differs from the adoption aspect of the study.

The weights in this case represent the relative importance of the e-banking

customers recorded on a five point scale (as shown in Table 3.9) over the eighteen

selected counts.

T 3.9: Weights for calculation of weighted scores of the components selected for the satisfaction aspect of the study. Choice of importance

Very important

Quite important

Neither important nor unimportant

Quite unimportant

Very unimportant

Weightings

5 4 3 2 1

The formula for computing the weighted scores of the components under each of

the extracted latent factors in relation to the satisfaction towards e-banking services is:

^^ ^ YJ^^ _ WiX, +W,X2 + . . . + W,̂ X„

V W W, + W2 + ... + W^

Where, Xw represents weighted average.

X represents the values of satisfaction i.e. Xi, X2, X3 Xp

W represents the weights attached (relative importance) i.e. W|, W2, W3 Wp

33

3.6.3 Statistical test for addressing the hypotheses of the study

In order to reach decisions regarding the choice of the statistical tests to be

applied for testing the hypotheses set in case of both the adoption and satisfaction aspects

of the study, the One-Sample Kolmogorov-Smirnov test was performed to test the null

hypothesis that the sample comes from a normal distribution. The results of the One-

Sample Kolmogorov-Smirnov test for both -the adoption and the satisfaction have been

shown in Table 3.10.

T 3.10: Result of the One-Sample Kolmogorov- Smirnov Test.

N Normal Parameters^ Mean Std. Deviation Kolmogorov-Smirnov Z Asymp. Sig. (2- tailed)

Adoption

267

51.04 5.564 1.818 .003

Satisfaction

267

69.06 10.458 3.227 .000

a. Test distribution is Normal.

In the above Table it is seen that the probability of the Z statistic is less than 0.05

in both the aspects of adoption and satisfaction and, therefore, the normal distribution in

both the aspects of the study is not a good fit.

Since the responses of the respondents in both adoption and satisfaction aspects of

the study do not follow normal distribution, the Non- Parametric tests viz. Kruskal-Wallis

H test (for K independent samples) and Mann-Whitney U test (for two independent

samples) were taken into consideration to test the hypotheses of the present study. The

testing of the hypotheses was made with the help of the SPSS 16 version.

34